401(k) Match
Employer contributions made in proportion to your own, up to a stated ceiling.
A common formula matches 50% of contributions on the first 6% of salary, which on $100,000 caps the employer contribution at $3,000. The structure means the employer amount is a function of the employee amount, so it scales with participation rather than being granted automatically.
Because the match is proportional and capped, contributing below the ceiling leaves part of the available employer contribution unpaid, and the size of that gap is arithmetic. Promi records the match that arrives, on the Retirement Contributions card, and does not estimate the part left unpaid.
Vesting determines when the matched amount actually belongs to you, typically over two to six years on either a cliff or graded schedule. Employee contributions vest immediately in all cases. Leaving before the schedule completes forfeits the unvested employer portion, which is worth knowing when a departure date is close to a vesting date.
Worked through
Two contribution rates, same formula
$95k salary with a 50% match capped at 6% of pay, contributing at 6% and at 3%.
- Contributing 6%
- $5,700
- Match received
- $2,850
- Contributing 3%
- $2,850
- Match received
- $1,425
The difference in employer contribution is $1,425 a year. Compounded at 7% for 30 years that amount reaches $134,607.
See your own 401(k) match
Promi computes this from your linked accounts, with the definition one click from the number.
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